It seems that Shanghai pricing is higher than the other two , (NY and London). The spread has been occurring on a regular basis and thus I expect to see arbitrage happening as investors buy the lower priced NY gold and sell to China at the higher price. This should drain the comex.

Also why would mining companies hand in their gold to the comex and receive constantly lower prices. They would be open to lawsuits if they knowingly continue to supply the comex despite the fact that they could be receiving higher prices in Shanghai.

end

Let us head over to the comex:

The total gold comex open interest FELL by 4,561 CONTRACTS to an OI level of 401,100 as GOLD FELL $17.10 with YESTERDAY’S trading. We are now in the contract month of December and it is the biggest of the year. here the front month of December showed a DECREASE of 5719 contracts DOWN to 6832.We had 4938 notices served upon yesterday so as I promised we lost 781 contracts or 78,100 oz will not stand for delivery and no doubt where paper settled.

For the next delivery month of January we had a loss of 115 contracts down to 2386. For the next big active delivery month of February we had a gain of 2283 contracts up to 273,896